Holiday Homes on the Rise in the UK

One of the intriguing spaces impacted by the Covid-19 pandemic is residential real estate. While certain areas, like metropolitan centers, have been hit hard by the pandemic, other housing markets are booming. People are more interested in living in communities with space between them and their neighbors. This change in domestic life has grown particularly noticeable with the rise in purchasing and letting holiday homes. The UK has seen a significant uptick in the interest in holiday homes, and it can be attributed to various factors.

Brexit

While the advent of Brexit has negatively impacted many holiday housing markets abroad, Brexit has still had a significantly positive impact on the holiday housing sector of United Kingdom real estate. With travel regulations between Europe and Great Britain changing, more and more individuals find it considerably easier to book or own property for a holiday on the isle. Just last year alone, one staycation was booked every 11 seconds, and while some attribute that spike to Covid, others predict it will stabilize into a new normal.

Cost Benefits

Several cost benefits have journeyed alongside this transition from external travel to internal travel. For those who own property, the increase in short-term letting has produced marked upticks in income, as the ability to turn guests over increases the profitability of a property. Furthermore, owners who let their holiday property receive governmental support via some tax breaks to promote their existence. Mortgage Interest Relief, Capital Gains Relief, and Business Relief are just three of the tax credits that have been allocated for those letting out holiday homes. Of present and immediate interest has been sustaining the Stamp Duty Holiday tax exemption, which will continue through June. As noted in the adjoining article, “The property purchase tax has been suspended on the first £500,000 of all sales in England and Northern Ireland since July.”

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